The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-08-12
To tie Property Holders in tie Ha7vaiiia~

To tie Property Holders in tie Haaaiia1
hingdOm:
Your attention is respectfully invited
to the advantages which would be offer.
ed by Home Mutual Fire and Marine
Insurance Company, to all parties who
have occasion to seek the protection of
Insurance in this Kingdom against fire
and marine losses.
1t is not proposed at this time to can
vass the subject exhaustively, but only
to point out some of the more import
ant features, which may be added to
later on.
A glance at the present condition of
Fire Insurance in this country may en-
able us to see more clearly the prospec
tive advantages of the proposed scheme.
Previous to the great fire in Honolulu
of the 18th of April, 1886, the Fire In
surance rates eXacted by the companies
doing business in this country, were on
such scale as to make this one of the
most desirable fields of its size in the
world for that class of operations.
1t has frequently been affirmed by
various local agents that the risks taken
here worked in the end loss to the
underwriters, or in other words, that
the aggregate of losses paid by the sew
eral companies on policies issued in
this Kingdom exceeded the amount of
premiums RENTED to the home offices
and that the Hawaiian public should be
thankful to these companies for taking
compassion on us, and reimbursing our
losses with hard coin. These assertions
have been made Notwithstanding the
fact that the profits of the business have
been sufficiently tempting to induce
over thirty companies, hailing from all
parts of the business world, to establish
agencies in this city, which under
healthy methods of management, or
reasonable rates, would seem to be ont
of all proportion to the eXent of the
field of operation.
Even very Indifferent knowledge of
the laws of business, and the causes
prompting the investment of capital,
and the taking of commercial risks and
ventures do not confirm the truth of
these statements, on the contrary their
| fallacv becomes more and more appar-
ent at every step.
Shortly after the fire already men
| toned, the local insurance agents form
ell themselves lltO " Dodiu1 tHu au-
yanced the rates of figures, which in
many cases were prohibtive, and num-
beers who formerly carried policies have
either reduced their amounts of insur-
ance. or taken the risks themselves.
This increase on the part of the under
writers would hardly seem fair or even
wise in view of the fact that the space
desolated by the late fire, and which
was the most dangerous part of the city,
has since been mostly included, by
statute, in the fre-proof limit, a great
portion of which has been covered by
substantial brick buildings, with reguv
lation Prevails. The water supply Of
the city has been largely increased; the
apparatus of the Fire Department
greatly added to, and its organization,
numbers and efficiency much improved,
These facts which are well known TO all
who are acquainted with the city would
seem to have furnished good grounds
for reducing rather than Increasing the
rates of Fire Insurance,
The idea of local companies of the
character proposed, is by no means ex-
detrimental. as many instances both on
the Pacific Coast, and in the older States
of the union might be cited, which have
not only proved financially successful,
but under judicl0ns management have
greatly extended the benefits and pro-
lection of Insurance amongst those who
stand in greater need OF this class Of
assistance.